Some assessment of the selloff

[admin]

We did that here, but below is a summary:

• Applied Opto loses some $45M in revenues from Amazon in Q3, or half its prospective total revenues for the quarter.
• Yet, it still manages to grow revenues at 25%+ with respect to last year's third quarter, and the shares are cheap.
• That is, not only has it fully replaced the lost revenues from Amazon, it has added another 25%.
• The Amazon loss is transitory, and even if it's not, revenue from it is just $8M-9M now.
• Even if it lost all of that, which is highly unlikely, it wouldn't mean much. More likely Amazon demand will come back.

Applied Optoelectronics: Some Stylized Facts To Keep Investors Grounded - Applied Optoelectronics, Inc. (NASDAQ:AAOI) | Seeking Alpha